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Bid Strategy - Target CPA

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# 1
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Hi,

 

Can anyone tell me about Target CPA - bid strategy?

 

See my below mentioned questions regarding Target CPA bid strategy:

1) How does it works?

2) Is it really helps to improve the cost/conversion?

3) if i implement the same then what would be the cost/ conversion?

 

I know the target CPA bid strategy works on histroy of the campaign -- in first month, my campaign's cost/ conversion was Rs.90 and in second month, it was Rs.70 and now, it is Rs.30. In this case, What would be a cost/ conversion if i implement the Target CPA bid straegy?

 

Thanks,

Suyog

1 Expert replyverified_user

Re: Bid Strategy - Target CPA

Top Contributor
# 2
Top Contributor
Hi Suyog,

Here is your answers:-

1) How does it works?

You have already explained how it worksSmiley Happy

3) if i implement the same then what would be
the cost/ conversion?

There is no thump rule that says if you enable the CPA bidding you will able to reduce the CPA from Y to X. It depends on your overall campagins history.

2) Is it really helps to improve the cost/
conversion?
Again it depends on how your campaigns optimized, Yes it helps but not always.

I have enabled the CPA bidding in diferent campaigns, but some campaigns it worked well but some campaigns not.


--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
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Re: Bid Strategy - Target CPA

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# 3
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Thanks for the answer.

Ok - based on the cost i given in the previous message what would you think will be a cost/ conversion if i will implement the target CPA bid strategy.

Also, while implementing the target CPA strategy we can set the CPA limit -- if i will set it to Rs.40 then it means i will get the conversions within that range or it will be lower/ more than that.

Can you please check this question (https://www.en.adwords-community.com/t5/Improve-results/Increase-the-Number-of-Clicks-Impressions-an... from me - would appreciate if you could answer this as well.

Thanks for your support - I'm new/ beginner in adwords Smiley Happy

Re: Bid Strategy - Target CPA

Top Contributor
# 4
Top Contributor
Hi SuyogSmiley Happy
-------------------------------------------
Also, while implementing the target CPA strategy
we can set the CPA limit -- if i will set it to Rs.40
then it means i will get the conversions within
that range or it will be lower/ more than that.
------------------------------------

.Generally it has been seen that you actual CPA would be around target CPA. Your actual CPA can be greater or lower than the target CPA. But it also requires time. If you enabled the Target CPA, it is the chances suddenly your CPA will increase but slowly and gradually it will be stable and your actual CPA would be around your Target CPA.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: Bid Strategy - Target CPA

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# 5
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Hi Rakesh,

Thanks for your support.

You haven't given answer to my second question.

Regards,
Suyog